How Much Life Insurance Do You Need?
There are a LOT of reasons for one to own life insurance.
An experienced Life Insurance agent will hear about 100 purposes over the course of their career, but, without a doubt here are the top five reasons.
ONE – You Want to Use Term Life Insurance to Pay off Family Debt
You want to protect your family and ensure that they can go on living, should the worst happen. In this case, you might tally up your maximum debt (mortgage, credit cards, loans, taxes, final expenses, etc.) and take out a term policy that would at the very least pay off these things after you are gone, thereby leaving your family at least in a position where they can move forward without your, debt free.
TWO – You want to Replace Your Income
Another good reason for having Term Life Insurance is to use a policy to replace your income. Your Cool Agent can help you with some calculations to figure out how much coverage you will need. You basically begin with your income of today, and figure some type of growth of that income, for your probable number of years expected to work (to figure out how much money you may earn over the course of your life (we have calculators that do just that), and then you just take out enough coverage to ensure that pool. It helps that you just calculate net-income (after taxes). Life Insurance goes to your beneficiaries TAX FREE and avoids probate.
THREE – You Want To Provide a Pool of Money for Your Heirs
Outside of paying off your debt, and providing for an income replacement; there are also other reasons to have a Term Life Insurance policy. Maybe you have children or nieces and nephews that you would like to help with their college costs. Maybe you want to insure that there is money there to plan and pay for your daughter’s wedding? Maybe you want to ensure there is money in a pool to help your kids with the down payment of their first home. There are really a 1,000 reasons for having term policies.
FOUR – You Want to offset Some Other Expense, Like “Estate Taxes”
One of the most important reasons to have a Term Life Insurance policy is “offsetting of other expense”. Yep. I am referring to estate taxes. Let’s be blunt.
FIVE – You Want to Leave
a “legacy” to Some Organization, Church, or Cause
To find out how much coverage you need, call me!